LONDON: Brent oil slipped below $97 a barrel yesterday, hit by dollar strength and ample supply, and was heading for its deepest quarterly drop in more than two years.
The dollar surged to a four-year high against a basket of currencies and a two-year high against the euro, making oil more expensive for holders of other currencies.
Brent for November delivery was down 33 cents at US$96.87 per barrel by 1403GMT. It has lost nearly 14 per cent in the third quarter, its biggest quarterly drop since April-June 2012.
US crude was down 84 cents at US$93.73 a barrel and was also on track for its biggest quarterly fall since the second quarter of 2012.
“The longer term trend is towards a falling price because China is slowing down and growth in Europe remains weak,” said Michael Hewson, chief market analyst at CMC Markets. Reuters